Tokyo - Asahi Kasei is to buy US-based car interior manufacturer Sage Automotive Interiors, a producer of warp and weft knitted fabrics, for US$700 million.
The deal, which will rise to $1 billion once debt is taken into account, is aimed at strengthening the Japanese firm's position in the car interior market.
Asahi Kasei is focusing on expanding its automotive-related business to strengthen relationships with vehicle manufacturers and their suppliers while expanding operations globally as the market for the interior material is continuously growing. Sage and Asahi Kasei already have a long-standing business relationship with the latter supplying Lamous microfibre suede to Sage.
Founded in 2009 and located in Greenville, South Carolina, Sage, which is was previously known as Milliken Automotive Division, is a major player in the development and manufacture of material for automotive interiors and holds the number one global share for vehicle seat fabric.
Its operations include development, manufacturing, and sale of knitted and woven fabrics as automotive interior materials from production facilities in United States, Italy, Poland, Romania, Brazil, and China.
